Humber/Ontario Real Estate Course 3 Exam Practice

If Seller Carter has signed a seller customer service agreement for sixty days and is approached by another agent to list his property during this period, what can Seller Carter do?

1. The seller is not allowed to enter a new listing agreement during this period.

2. The seller may sign a new listing agreement but might owe fees to both agents.

3. The seller has the right to cancel the current agreement under a specific clause allowing for cancellation.

4. The seller abides by an automatic waiver of fees if a new representation agreement is signed.

5. The seller can only enter a new agreement after the existing one ends.

6. The seller must honor the current agreement and wait until its expiration.

The correct answer is: The seller may sign a new listing agreement but might owe fees to both agents.

The correct response is that the seller may sign a new listing agreement but might owe fees to both agents. This situation arises because while the seller has an active service agreement with one agent, he is still allowed to engage with other agents. However, doing so can lead to a potential liability for fees to both agents involved. This reflects the reality of real estate practice where multiple agreements can be in play, and obligations may arise from each one. If another agent convinces the seller to list the property while the first agreement is still in effect, it’s essential for the seller to understand that they could be responsible for compensating both agents, depending on the terms of the agreements in question and local regulations. Engaging a second agent during the term of an existing agreement could lead to a scenario where the seller is facing multiple representation scenarios, which complicates fee structures and obligations. Therefore, it’s important for the seller to carefully consider the implications of entering into a new listing agreement while bound by an existing one.